Fidelity's £2.7bn corporate bond fund moves to sustainable range

Transition on 26 May

Fidelity International is transitioning its flagship £2.7bn Moneybuilder Income fund to its sustainability range, as it believes there is a “gap in the market,” Investment Week can reveal.

The 27-year old fund will continue to be run by portfolio managers, Sajiv Vaid and Kris Atkinson, with the transition taking place on 26 May. The fund, which will be rebranded as Fidelity Sustainable MoneyBuilder Income, will be a "sustainable focused strategy" which requires a minimum of 70% of its assets to be invested in securities deemed to maintain sustainable characteristics defined as MSCI ESG Ratings of AAA-BBB, or BB for EM. If unrated by MSCI ESG they must be rated A-C by Fidelity for sustainability. The fund has traditionally held between 80-87% in issuers with "sustainable...